Decoding 7 Analyst Evaluations For Arcadium Lithium

7 analysts have expressed a variety of opinions on Arcadium Lithium ALTM over the past quarter, offering a diverse set of opinions from bullish to bearish.

The following table encapsulates their recent ratings, offering a glimpse into the evolving sentiments over the past 30 days and comparing them to the preceding months.

Analysts have set 12-month price targets for Arcadium Lithium, revealing an average target of $6.97, a high estimate of $11.00, and a low estimate of $4.50. A 63.32% drop is evident in the current average compared to the previous average price target of $19.00.

Decoding Analyst Ratings: A Detailed Look

An in-depth analysis of recent analyst actions unveils how financial experts perceive Arcadium Lithium. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Arcadium Lithium. This information offers a snapshot of how analysts perceive the current state of the company.
• Rating: Delving into assessments, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings communicate expectations for the relative performance of Arcadium Lithium compared to the broader market.
• Price Targets: Delving into movements, analysts provide estimates for the future value of Arcadium Lithium's stock. This analysis reveals shifts in analysts' expectations over time.

For valuable insights into Arcadium Lithium's market performance, consider these analyst evaluations alongside crucial financial indicators. Stay well-informed and make prudent decisions using our Ratings Table.

Stay up to date on Arcadium Lithium analyst ratings.

Unveiling the Story Behind Arcadium Lithium

Arcadium Lithium is a pure-play lithium producer that was formed in the Allkem-Livent merger in January 2024. Arcadium should benefit from increased lithium demand via higher electric vehicle adoption, as lithium is a key component of EV batteries. The company's low-cost lithium carbonate production comes from two brine resources in Argentina. Arcadium also produces spodumene, a hard rock lithium upstream concentrate, from a mine in Australia and operates downstream lithium hydroxide conversion plants in the United States and China.

Key Indicators: Arcadium Lithium's Financial Health

Market Capitalization Analysis: Falling below industry benchmarks, the company's market capitalization reflects a reduced size compared to peers. This positioning may be influenced by factors such as growth expectations or operational capacity.

Revenue Growth: Arcadium Lithium's revenue growth over a period of 3 months has faced challenges. As of 30 September, 2023, the company experienced a revenue decline of approximately -8.72%. This indicates a decrease in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Materials sector.

Net Margin: Arcadium Lithium's net margin excels beyond industry benchmarks, reaching 41.34%. This signifies efficient cost management and strong financial health.

Return on Equity (ROE): Arcadium Lithium's financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of 5.15%, the company showcases efficient use of equity capital and strong financial health.

Return on Assets (ROA): Arcadium Lithium's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 3.76% ROA, the company effectively utilizes its assets for optimal returns.

Debt Management: Arcadium Lithium's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.14.

What Are Analyst Ratings?

Analyst ratings serve as essential indicators of stock performance, provided by experts in banking and financial systems. These specialists diligently analyze company financial statements, participate in conference calls, and engage with insiders to generate quarterly ratings for individual stocks.

Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.

This article was generated by Benzinga's automated content engine and reviewed by an editor.